Free Trade Agreement And Its Impact On The Economy Essay

Free Trade Agreement Its Impact on the Economy After the end of World War II, the Governments began having an active interest in making trade liberalization a reality via multilateral negotiations (Baldwin Jaimovich, 2012). At the time, the United States was aggressively pursuing liberalization of international trade by forming mutual trade agreements between several counties in successive rounds of multilateral negotiations via the General Agreement on Tariffs and Trade (GATT) and later the World Trade Organization (WTO). However, in the past few years, there has been a growing concern over the effectiveness of multilateral negotiations (Cooper, 2014). This concern has led to the formulation of Free Trade Agreement (FTA), which removes nearly all trade subsidies and restrictions for both individuals and a business around the world. Currently, several FTAs have been signed and proposed between countries (Baier et al., 2014). Economists around the world believe that the FTA now includes a large part of the world’s eco nomic output, and, thus, their impact should be studied in greater depth and detail. The consensus over the impact of FTA is that all their effects, good or bad, should be extremely minimalistic on all the countries involved. The following report provides background on the FTA, examines the FTA regulations, and discusses the impact that the FTA has on the global economy. Background on Free Trade Agreements (FTA) Post World War II, various United StatesShow MoreRelatedInternational Factors and Multinational Corporations1724 Words   |  7 PagesRegional Trade Agreements and Global trade liberalization are common terms that are used to analyze different market structures in the market. 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